The US contract research organization Quintiles and Quest Diagnostics, a US provider of diagnostic information services, have announced a definitive agreement to form a global clinical trials laboratory services business. According to the two companies, the new joint venture will provide customers with the depth of capabilities and end-to-end clinical trial laboratory services required to succeed in the increasingly complex biopharmaceutical industry.

The joint venture will be the second-largest central laboratory services company in the world, as it would have generated approximately $575 million in revenues in 2014. Upon closing of the transaction, which is expected in occur in the third quarter of 2015, Quintiles will own 60% of the new entity while Quest Diagnostics will own 40%.

‘This joint venture builds upon the best of Quintiles’ and Quest Diagnostics’ strengths, creating top-quality services for customers,’ said Tom Pike, CEO, Quintiles. ‘It will join together the scale, expertise and end-to-end capabilities of the broader Quintiles and Quest Diagnostics organizations with a laser-like focus on providing world-class laboratory services that will help improve customers’ probability of success. Quintiles and Quest Diagnostics are already industry leaders with complementary offerings, capabilities and visions to improve patient outcomes and human health. We’re excited about the opportunities ahead of us and the benefits we can provide customers.’

‘We’re thrilled to partner with the world’s leading biopharmaceutical services provider to help customers succeed with their clinical trials and support the pursuit of precision medicine,’ said Steve Rusckowski, CEO, Quest Diagnostics. ‘For Quest Diagnostics, the joint venture model will enable us to generate growth and value from our clinical trials assets while simultaneously strengthening our focus on our core diagnostic information services business.’

Beyond the immediate opportunity in laboratory services support for clinical trials, Quintiles and Quest Diagnostics expect to benefit from opportunities to collaborate in other areas. These include: developing new ways to enhance patient recruiting and retention for clinical trials; speeding the validation, development and commercialization of companion diagnostics; enhancing support of real-world late phase studies; and developing new population-health analytics and tools.